Dutch households are losing purchasing power sharply this year due to rising prices. On average, families lose about 40 euros per month. This is stated by the National Institute for Budget Information (Nibud) based on calculations, the ANP reports.
Nibud predicts the strongest decline in purchasing power in years. Households that cannot count on an increase in their income may experience a decrease in purchasing power of up to more than 200 euros per month, according to the Institute. Two-income couples with several children can lose more than 100 euros per month.
“We see that large groups of households have tens of euros less to spend every month,” said Arjan Vliegenthart, director of Nibud, in a statement. He is especially concerned about “the more than two million households that are already budgeting themselves stupidly to get all the bills paid.”
Also read: Dutch inflation in December was 5.7 percent
High energy prices
According to the researchers, high inflation is the cause of the loss of purchasing power for many households. This has been fueled by high energy prices. Gas and electricity in particular have become considerably more expensive in recent months. Although the government has reduced the tax on energy, and low-income households from municipalities can receive an allowance for their energy costs, according to the researchers, this is not enough to compensate for the loss in purchasing power.
Nibud’s calculations are based on an inflation of 3 percent, as De Nederlandsche Bank (DNB) predicts for this year. If inflation turns out higher, many households will decline even more, warns the Institute.
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